The Swedish telecommunication company Ericsson is facing the prospect of being fined again by the U.S. Department of Justice (DOJ). In 2019 Ericsson was fined $1 billion for breaching the Foreign Corrupt Practices Act (FCPA). It is important to note that the DOJ can fine Ericsson, a Swedish company because they are listed on the New York Stock Exchange. Ericsson was found guilty of handing out bribes and operating illicit slush funds to expand their business. According to an article by tech website Fiercewireless.com, Ericsson bribed officials in six countries, Vietnam, China, Djibouti, Indonesia, Kuwait, and Saudi Arabia. On top of that, early last year, there were reports that Ericsson may or may not have paid a bribe to someone affiliated with ISIS to provide telecom equipment to Iraq.

Last week, a Reuters article revealed that Ericsson would be fined another $206 million for not adhering to its original agreement with the DOJ. According to a statement by the DOJ, Ericsson breached the DPA (Deferred Prosecution Agreement) by violating the agreement’s cooperation and disclosure provisions. This means Ericsson was not upfront with the DOJ about their financial activities. As a result, Ericsson must be overseen by an outside compliance professional for a further two years. In many countries where Ericsson operates, corruption is simply part of doing business. However, Ericsson didn’t heed the DOJ’s warning and is now facing a stiffer financial penalty that could have been avoided.